Obtaining the best Acura financing rates often comes down to your credit score. If you are planning on buying a new or pre-owned Acura car soon, taking steps to boost your credit score can save you money over the life of your loan. The finance professionals here at Acura of Sherman Oaks are here to help you understand how to raise your credit score before you start your Acura financing plan.
Check the Report for Errors
Start the process by obtaining a free copy of your credit report from the major credit bureaus and reviewing it carefully for mistakes. You may find errors such as paid-off debts showing as outstanding or accounts that do not belong to you. These can drag down your score, and disputing these inaccuracies is often the fastest way to see an immediate jump in your score.
Maintain Consistent Payment Habits
Ensuring that you always pay your bills on time is a large factor in maintaining a high credit score. Set up automatic payments or calendar reminders to make sure that you never miss a due date, as just a single late payment can have a negative impact. Additionally, avoid opening up new credit cards right before you apply for an auto loan. Doing so causes a hard inquiry, temporarily dipping your score.
Reduce Debt Utilization
Your credit utilization ratio, or the amount of credit you are using compared to your limits, plays a large role in your score. One strategy is to pay down high credit card balances to get your overall utilization below 30 percent.
Apply for Acura Financing in Sherman Oaks, CA
Improving your credit score takes time, but the reward is a lower interest rate. Follow the above steps to position yourself for a better financing offer. Visit the finance center at Acura of Sherman Oaks today to discuss your options!
